Unit 2 - Soviet Economy Flashcards
What industries were nationalised? (Lenin / State Capitalism)?
Only large industries were nationalised. Small factories and workshops were either controlled by workers or handed back to capitalists.
Aims of War Communism (Lenin)
High levels of production of war goods
Efficient allocation of workers
Food production for the soldiers/workers
Successes of War Communism (Lenin)
- Allowed government to increase power
- Won the civil war
- All the unemployed were conscripted into the workforce.
- Ensured that the Red Army got the resources it needed to fight and win the civil war
- Public services such as trams and trains were free (due to the abolition of money and hyperinflation making money worthless)
Failures of War Communism (Lenin)
Economic collapse:
Grain requisitioning = lower rates of agricultural production, Cheka authorised to seize grain from anyone without payment
Industrial production declined because no incentive to work - By 1921, only ⅕ of the figure from 1913 - Strict Labour rules - punishments for workers who were late/slacking and the working day extended to 11 hours - death penalty was introduced for strikers - peasants not paid for grain
Industrial workforce declined from 3m in 1917 to 1.2m in 1922
Led to a rise in unemployment and famine - only 43% of the 1917 harvest was met in 1921
Political crisis: Rebelling such as the Kronstadt and Tambov rebellion
Growth of black market: 60% of goods - workers forced to steal government resources
40% of food consumed was acquired through rationing (Bourgeoisie got the least)
Disease and starvation - many left cities to try find more accessible food on farms
Forced volunteering was introduced and workers were expected to work on projects such as road fixing for free.
Aims of New Economic Plan
Retain political power, revive the economy & build socialism.
Also, unpopularity of War Communism (such as rationing)
Successes of New Economic Plan
Industrial growth: Stimulated production, government used taxes to reopen closed factories and by 1926, industrial production recovered to 1913 levels
The level of production of electricity, cattle, pigs and grain, coal and steel grew drastically
Political and economic stability: Ended grain requisitioning, free trade ended famine and food of all kinds available in city markets
Peasants and small factory owners could make a profit meaning they could grow more grain to eat and sell
A greater sense of incentive was created through the NEP which allowed for greater growth of production
Living conditions improved
Failures of New Economic Plan
Industrial growth: Failed to provide money necessary to build new large-scale factories. From 1926-28, the economy plateaued.
The pay of minors, metal workers and engine drivers was lower than before 1914
Scissor crisis 1923: Uneven economic growth, reached crisis point by 1923 and showed NEP was incapable of industrialising the economy.
Corruption: NEP men emerged.
Stalin’s 1st Five Year Plan 1928-32
Neglected consumer goods in favour of heavy industry
Stalin’s 2nd Five Year Plan 1933-37
Initially set targets for consumer goods but became increasingly focused on defence and heavy industry
Stalin’s 3rd Five Year Plan 1938-41
Mainly geared towards heavy industry and arms production
Stalin’s 4th Five Year Plan 1945+
Reconstruction, reconverting and rebuilding factories
Aims of Stalin’s Five Year Plans
- Industrialise - catch up with the West
- Eliminate inefficiencies
- Improve the military
- Assert his authority
Successes of Stalin’s Five Year Plans
- Heavy industry increased: Production of Iron, steel, coal and electricity all increased massively. By building new factories they were able to exploit the Soviet Union’s natural resources.
- Transportation of goods became more efficient with the building of Moscow’s first train lines 1935
- Rearmament: In the 1930s, it was clear war was coming - ⅓ of government spending on military
- Improved incentives: Authorising higher payments and rewards for the most productive workers; Alexei Stakhanov became famous as a heroic leader in the Soviet Union as he mined 102 tons of coal in six hours (14 times the average miner). - he was rewarded and used as an example of a hardworker.
Failures of Stalin’s Five Year Plans
The Terror: members of Gosplan were heavily targeted which meant that the third five year plan could never be finished
Production distribution: Did not specify what they would use materials for and there was little coordination between factories. Led to materials being stored or wasted
Low labour productivity: Low pay and lack of incentives
Housing shortages: housing was never built. Most workers lived in shacks. Houses that were built had problems such as lack of running water
Unrealistic targets: put factory members under too much pressure and lied about their productivity levels
Black market: thrived due to the inefficiencies within the plan
Poor working conditions - workers were forced to work 7 days a week and work hours were long. Lateness and absence were criminalised
Consumer goods: huge shortage in consumer goods (clothes and furniture). Caused by priorities being elsewhere and underestimating the demand through poor planning. Goods were rationed.
Production quality: often low, targets set on quantity (amount) not quality. Resulted in factory managers focusing on producing large amounts of material without thinking about what it was like.
Agriculture suffered: five year plans were focused on industrial growth. Agriculture was used as a vessel for funds for the five year plans and growing industry
Aims of Agricultural Collectivisation
- To replace the NEP
- There was an Agricultural production fall in 1927-8
- Communists believed Kulaks were holding the government to ransom
- Needed new policy to deal with Kulaks and restore economic growth
- Allowed Stalin to lean left and defeat Trotsky, Kamenov and Zinoviev
- To help aid with industrial growth
- Gave tighter control for the government
Successes of Agricultural Collectivisation
- Benefitted industry and rearmament
- Mechanisation (Short Term): led to huge increase in production equipment (75,000 tractors) there was only a limited impact.
- Achieved its aim as collectivisation released much more money to fund industrialisation
- Centralised power for Stalin and his government
Failures of Agricultural Collectivisation
Destruction of Soviet farming (Short Term): huge opposition led to purposeful destruction of soviet farms, 26 million cattle were slaughtered, 17m horses, 11m pigs, 60m sheep and goats
Grain procurement (Short term): huge amounts if grain were seized (22.6mil tons in 1933, risen from 10.8 million in 1928)
Grain harvests (Long Term): record harvest in 1937, but grain production declined again from 1938-40
Agriculture effectively sacrificed for industry growth
Agriculture during WW2 (Long term): Soviet government relied on US imports to feed the red army, Bread rations fell by 40%, Potato rations fell by 80%, harvest declined from pre-war high of 95.5 million tonnes to 46.8 million tonnes in 1945. Failures were blatant in WW2 as farming was consistently unable to meet the needs of the citizens and the army.
Dekulakization
Private farming (Long term): 7% of farms stayed independent of the collective system. Private farms produced double the amount of meat and milk produced in state farms
Famine (Short term): 1932-1933 famine led to the deaths of 5million. Ukraine government orchestrated a famine to punish resistance
Crops, machinery and animals were destroyed as a consequence of collectivisation
There was a reduction of agricultural production due to:
- The execution or deportation of kulaks who were often the most experienced farmers.
- the absence of incentives as farmers were unable to make profits
Collective farms were less productive causing low harvests. They produced 320 kilos per hectare whereas private farms produced 410 kilos per hectare
Collectivisation led to famine in the Ukraine. The famine was orchestrated by the government as an answer to the resistance to collectivisation by farmers
The famine lasted from 1932 - 1933
5 million deaths were caused by the famine
Aims of Recovery after the War (Stalin’s Fourth Five Year Plan)
- WW2 had destroyed all progress made in the Five Year Plans. The fourth five year plan 1945-50: focused on growing soviet industry after WWII.
- Extreme high levels of industrial growth - 88% of investment went into heavy industry
- The plan also focused on military spending just like the previous plans. This was due to the emergence of the Cold war in 1946
- The Fourth five year plan focused on reconstruction of infrastructure; mainly factories were rebuilt.
Successes of Recovery after the War (Stalin’s Fourth Five Year Plan)
- Industrial output grew by 80% from 1945 - 1950
- Although still scarce, production of consumer goods doubled
after the war. - Between 1945 and 1950 the soviet economy was the fastest growing economy in the world.
- Some factories and mines in Ukraine and Siberia were able to exceed or achieve pre-war production rates.
Failures of Recovery after the War (Stalin’s Fourth Five Year Plan)
- The Cold War emerged to high levels of military spending. By 1952, the total military expenditure was almost a quarter of the government’s budget
- 25 million people were homeless
- Wages for workers were low and reconstruction rather than homes
- Agriculture suffered severe shortages of resources and workers from 1946 - 1949
- Private farms were ended leading to production dropping.
- Only 12% of investment went into food production and consumer goods.
Agriculture under Khrushchev - Investment in resources
- Investment in better fertiliser - 40% rise in production
- Investment in better and improved quality of equipment - Build tractor factories - 30% rise
Agriculture under Khrushchev - Corn campaign
Khrushchev visited the USA and saw that they grew maize - He replicated this in the USSR. More efficient crop, the idea was to boost meat production too. Encouraged farmers in Ukraine to move away from wheat production in order to grow maize.
Agriculture under Khrushchev - Virgin lands scheme
To farm new lands, there had to be an increase in the number of farmers - By 1964, 2.9m to 8.6m. Volunteers from the Komsomol (young communist league) were sent to work on the previously unfarmed lands. Turned unfarmed land in northern Caucasus, Kazakhstan and western siberia into new farms (considered his most ambitious plan). Wheat production moved to previously unfarmed lands in siberia.
Agriculture under Khrushchev - Improved incentives
- Lowered quota for amount farms had to produce - Anything past quota was profit for farms
- Anything made over quota was given a higher price - Led to 250% rise in farm incomes
- Changed relationship between the government and collective farms, so they could earn more from what they produce by raising the prices of farm goods.
